We are discussing EV Manufacturer Ola Electric to Raise Debt of $12 Million From VC Firm Alteria Capital:
Ola Electric, an EV manufacturing startup, plans to raise a debt of $12 million in a debt and equity round led by VC firm Alteria Capital. The round is more likely to have participation from the company’s new and existing investors. Ola Electric may use this funding for expansion and to enhance its technology.
The board at Ola Electric has approved a resolution to allot 10,000 non-convertible debentures at an issue price of Rs 1,00,000 each to Alteria Capital, and 6,000 NCDs will be offered to Alteria Capital India Fund II while the remaining will go to Alteria Capital India Fund III. These fresh proceeds can be used to scale up operations, meet public demand, and for general corporate purposes. However, the company did not clarify how to use this amount. This debt shows the trust of Alteria Capital in the Ola Electric market potential and business model. The company offers its users two-wheeler electric vehicles with best-in-class components and warranty.
The firm preliminarily secured Rs 410 crore in a round led by EvolutionX debt capital and closed the debt and equity round at 384 million USD. The company has raised an aggregate of 1.4 billion USD to date. The Securities and Exchange Board of India approved the company’s original public offering. The IPO handed fresh shares worth Rs 5,000 crore with an Offer-for-sale component of more than Rs 9.51 crore shares.
Ola Electric reported an 88 percent increase in net loss year-on-year to Rs 1,471.6 crore for the fiscal year 2023. Total sales increased by seven times to Rs 2,630 crore in FY23. The net loss for the first quarter of FY24 stood out at Rs 267.1 crore on operating revenue of Rs 1,242.7 crore. To recover from its net loss, the startup downsized its workforce and reduced its employees. This EV startup competes with companies such as Bajaj, Ather Energy, TVS, and Hero.
Conclusion
Two-wheeler EV manufacturing startup Ola Electric plans to raise $12 million in debt in a round led by Alteria Capital. The round will likely involve participation from new and existing investors, including VC fund firm Alteria Capital. The company may use the fund for network expansion and scale-up to meet working capital requirements. The board at Ola Electric has approved a resolution to lot 10,000non-convertible debentures at an issue price of Rs each to Alteria Capital, and 6,000 NCDs will be offered to Alteria Capital India Fund II while the remaining will go to Alteria Capital India Fund III.
These fresh proceeds can be used to scale up operations, meet public demand, and for general commercial purposes. However, the company didn’t clarify how to use this amount. This debt shows the trust of Alteria Capital in the Ola Electric market potential and business model. This startup competes with other two-wheeler Manufacturers, including Ather Energy, TVS, hero Motocorp, and Bajaj.
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